R

Popular Master Guide CUET-UG Books Series

10

Accountancy Book Keeping Section-II: Domain Specific Subject

Highly Useful for Admission into UG Courses/ Programmes offered by Various Universities

R. Gupta's ®

Popular Master Guide

CUET-UG

10

Accountancy/Book Keeping by

RPH Editorial Board

R. Gupta’s® CUET-UG Entrance Exam Books Book Code

Subjects

R-2641

General Test (Section-III)

R-2642 R-2703 R-2715

R-2751

Book Code

Subjects

330

R-2732

Books Series-9: Biology, Chemistry, Physics (Sec.-II)

360

330

R-2714

Books Series-12: Business Studies (Section-II)

130

270

R-2716

Books Series-13: History (Section-II)

130

380

R-2717

Books Series-14: Political Science (Section-II)

130

R-2718

Books Series-15: Geography/Geology (Section-II)

140

R-2719

Books Series-16: Home Science (Section-II)

130

R-2720

Books Series-17: Sociology (Section-II)

130

R-2721

Books Series-18: Physics (Section-II)

160

R-2722

Books Series-19: Chemistry (Section-II)

130

R-2723

Books Series-20: Mathematics (Section-II)

110

R-2724

Books Series-21: Biology (Section-II)

110

R-2752

Books Series-22:

180

Books Series-23: Music (Hindustani, Carnatic, Rabindra Sangeet, Percussion (Section-II)

360

Books Series-24:

180

Price

(Section-III) Books Series-1: English Language (Section-IA) Books Series-2: Accountancy/Book Keeping, Economics/Business Economics, Business Studies (Section-II) Books Series-3: History, Political Science, Geography/Geology (Section-II)

380

Books Series-4: Home Science/Sociology/ History (Section-II)

380

R-2300

Books Series-5: Legal Studies (Section-II)

195

R-2704

Books Series-6:

195

R-2706

Books Series-7: Fine Arts/Visual Arts/ Commercial Arts (Section-II)

240

R-2705

R-2731

Books Series-8: Physics, Chemistry, Mathematics (Section-II)

370

R-2753

R-2711

(Section-IA)

Price

(Section-II)

(Section-II)

Published by O.P. Gupta for Ramesh Publishing House Admin. Office 12-H, New Daryaganj Road, Opp. Officers' Mess, New Delhi-110002  23261567, 23275224, 23275124 E-mail: [email protected] For Online Shopping: www.rameshpublishinghouse.com

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Book Code: R-2712 ISBN: 978-93-5477-143-9 HSN Code: 49011010

Price: ` 170

EXAMINATION STRUCTURE SECTION-II: DOMAIN SPECIFIC SUBJECT

40 Questions to be attempted out of 50

Time

Subject

No. of Questions 



Input text can be used for MCQ Based Questions MCQs based on NCERT Class XII Syllabus only

45 minutes for each Domain Specific Subjects



Mode of the Test

:

Computer Based Test (CBT)



Test Pattern

:

Objective type with Multiple Choice Questions

TESTS DESIGN There are three Sections in the design of the test:  Section IA

:

13 Languages (As a medium and “Language”)

 Section IB

:

20 Languages

 Section II

:

27 Domain Specific Subjects

 Section III

:

General Test

Note: A candidate has the option to choose any Language/Domain specific Subjects/ General Test or a combination there of as may be required for admission to specified course/s of the desired University/ies while applying. It is not mandatory to choose any one or more of the Tests/Subjects stated above. The choice of Tests/Subjects would depend on the course/s opted by the candidate and the University/ies where admission is sought. A Candidate can take maximum of 09 Tests in following manner: 

Maximum of 02 languages from Section IA and Section IB taken together, maximum of 06 Domain Subjects from Section II and General Test from Section III.



Maximum of 03 languages from Section IA and Section IB taken together, maximum of 05 Domain Subjects from Section II and General Test from Section III.

(iii)

SAMPLE PAPER (SOLVED)

Sample Paper

1

CUET-UG ACCOUNTANCY/BOOK KEEPING* SECTION-II : DOMAIN SPECIFIC SUBJECT 1. A business has earned average profits of ` 4,50,000 during the last few years and the normal rate of return in a similar line of business is 15%. The value of net assets of the business is ` 25,00,000. What will be the value of goodwill of the business if it is to be valued by capitalization of average profits method. A. ` 3,00,000 B. ` 2,50,000 C. ` 5,00,000 D. ` 3,75,000

A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) C. Assertion (A) is false, but Reason (R) is true D. Assertion (A) is true, but Reason (R) is false 5. Assertion (A) : In the case of change in profit-sharing ratio, there was a balance in Workmen Compensation Reserve ` 30,000 and till the date of reconstitution, the claim for workmen compensation is ` 12,000. Partners of the firm decided to distribute between them ` 30,000 in their profit-sharing ratio. Reason (R) : Workmen Compensation Reserve is the part of profits. Therefore, it should be distributed between the partners in their profit-sharing ratio.

2. X and Y are partners sharing profits and losses in the ratio of 3 : 2. The balance of their capital as on 01st April, 2020 – X : ` 5,00,000 and Y : ` 3,00,000. They are allowed interest on capital @ 20% p.a. The profits for the year ending 31st March, 2021 ` 80,000 (before charging interest on capital). The profits of the partners to be allocated to X and Y as: A. X : ` 40,000 & Y : ` 40,000 B. X : ` 50,000 & Y : ` 30,000 C. X : ` 48,000 & Y : ` 32,000 D. None of these

6. Assertion (A) : At the time of change in profit-sharing ratio, assets are revalued and liabilities are reassessed. Reason (R) : The change in the value of assets and liabilities belongs to the period prior to reconstitution and gain or loss on revaluation is shared in the sacrificing ratio by the partners.

3. A partner of the firm drew ` 10,000 in the middle of each quarter for personal purpose against the profits. As per the Partnership Deed, interest on drawings to be charged @ 10% p.a. Interest on drawings will be: B. ` 1,000 A. ` 500 D. ` 2,000 C. ` 3,000

7. Assertion (A) : In the case of change in profit-sharing ratio between partners, goodwill to be valued and adjustment to be made in capital / current accounts of partners with sacrificing and gaining share of valued goodwill. Reason (R) : V alued goodw ill to be debited/ credited in capital / current account of partners with gaining / sacrificing share of valued goodwill.

4. Pick the odd one out: A. Interest on partner’s capital B. Interest on partner’s loan C. Salary to partner D. Interest on partner’s drawings Directions (Qs. No. 5-7): There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below for the question. *40 Questions to be attempted out of 50

1

2712 (SP)—1

2

Sample Paper

8. ________ goodwill is the excess of desired total capital of the firm over the actual combined capital of all partners. A. Existing B. Premium C. Valued D. Hidden 9. Match the columns for the situations at the time of admission of new partner: Column-I Column-II (i) Old Ratio (a) Goodwill brought in by new partner (ii) Sacrificing Ratio (b) Employee Provident Fund (iii) New Ratio (c) Profit & Loss Suspense A/c (d) Profit & Loss (Cr.) A/c (iv) Not to be distributed Codes: (d) (c) (b) (a) A. (i) (iv) (ii) (iii) B. (ii) (iv) (iii) (i) (iv) (iii) (i) C. (ii) (iv) (iii) (ii) D. (i) Directions (Qs. No. 10 and 11): There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below for the question. A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) C. Assertion (A) is false, but Reason (R) is true D. Assertion (A) is true, but Reason (R) is false 10. Assertion (A) : If the am ount of any asset was undervalued, then revaluation account will be credited to restore the asset’s amount to its actual asset value. Reason (R) : Increase in the amount of asset is a gain for the firm. 11. Assertion (A) : On admission of a new partner, received amount from a debtor which was written off in earlier, credited to revaluation account. Reason (R) : It is a loss on reconstitution of partnership. 12. The part of un-called capital, to be called only in the liquidation of a company is called: A. Un-reserved Capital B. Reserve Capital C. Capital Reserve D. Calls-in Arrears

Directions (Qs. No. 13 – 15): There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below for the question. A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) C. Assertion (A) is false, but Reason (R) is true D. Assertion (A) is true, but Reason (R) is false 13. Assertion (A) : Equity shares does not carry fixed rate of dividend and they are the ultimate risk bearer. Reason (R) : Equity shareholders are getting dividend from residule part of profits and in the case of windup of the company, invested money will be refunded at the last. 14. Assertion (A) : Cumulative preference share capital is the share capital in which unpaid amount of dividend to be paid in the next year along with unpaid amount of dividend of previous year. Reason (R) : Participative preference share capital holders have right to participate in the decision making activities relating to their interest. 15. Assertion (A) : A company must receive minimum subscription on public issue of shares. Reason (R) : In default to receive m inimum subscription, company could not allot its shares. Directions (Qs. No. 16 and 17): Read the information given below and give the answer for the questions. X Ltd issued 50,000 shares of ` 100 per share for public subscriptions at 20% premium. Amount payable as under: On Application

: ` 40 per share (including 10% premium)

On Allotment

: ` 40 per share (excluding 10% premium)

On First & Final Call : ` Balance Application received for 75,000 shares. Allotment was made to 60,000 share applicants. All due money was duly received except from a shareholder (Ashok) allotted to whom 12,000 shares, failed to pay allotment and calls. These shares were forfeited. Out of the forfeited shares, 9,000 shares re-issued at ` 80 fully paid. 2712 (SP)—1-II

Sample Paper

16. Which of following amount received on allotment? A. ` 15,96,000 B. ` 21,00,000 C. ` 5,04,000 D. ` 4,00,000 17. Which of the following amount to be transferred to Capital Reserve A/c? A. ` 4,80,000 B. ` 3,96,000 C. ` 2,76,000 D. ` 1,62,000 18. Match the columns with statements of a company: Column-I (a) Proposed Dividend (b) Staff Welfare Expenses (c) Interest paid on Debentures (d) Public Deposits Codes: (a) A. (iii) B. (ii) C. (ii) D. (i)

(b) (iv) (iv) (i) (ii)

reference to the financial Column-II (i) Financial Cost (ii) Long-Term Borrowings (iii) Contingent Liability

(c) (i) (i) (iii) (iii)

(iv) Employee Expenses

Benefit

(d) (ii) (iii) (iv) (iv)

Directions (Qs. No. 19 and 20): There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below for the question. A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) C. Assertion (A) is false, but Reason (R) is true D. Assertion (A) is true, but Reason (R) is false 19. Assertion (A) : Bills payable are shown as trade payables in the balance sheet of the company. Reason (R) : Creditors and Bills payable forms the part of Trade Payables. 20. Assertion (A) : Bank charges charged by the bank are included in finance cost. Reason (R) : Bank charges are an expense not incurred in connection with raising finance but for availing the services of the bank.

3

21. Outstanding Salary will be shown under which of the following sub-head of the head Current Liabilities on the Equity & Liability side of the Balance Sheet. A. Short-term borrowings B. Trade payables C. Short-term provision D. Other current liabilities 22. Match the columns with reference to the analysis of financial statements of a company: Column-II Column-I (i) Does not consider price (a) Firm level changes (b) Types of Analysis (ii) Intra-firm and Inter-firm Analysis (c) Tools of Analysis (iii) Horizontal and Vertical Analysis (iv) Comparative and Com(d) Limitation mon Size Statements Codes: (a) A. (iii) B. (ii) C. (ii) D. (i)

(b) (iv) (iii) (i) (ii)

(c) (i) (iv) (iii) (iii)

(d) (ii) (i) (iv) (iv)

23. The technique of studying the operational results and financial position over a series of years is known as: A. Ratio Analysis B. Common Size Analysis C. Trend Analysis D. Cash Flow Analysis Directions (Qs. No. 24 and 25): There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below for the question. A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) C. Assertion (A) is false, but Reason (R) is true D. Assertion (A) is true, but Reason (R) is false 24. Assertion (A) : Issue of Bonus Shares will not be affected to Debt-Equity Ratio. Reason (R) : Issue of Bonus Shares increase the amount of Equity. 25. Assertion (A) : Current Ratio is computed to assess the short-term financial position of the business firm. Reason (R) : Current Ratio express the competency of a business firm to meet the shortterm payment obligation.

4

Sample Paper

26. Cost of Goods Sold ` 1,50,000; Closing Stock ` 60,000; Excess of Closing Stock over Opening Stock ` 20,000. What is the Inventory Turnover Ratio? B. 3 times A. 4 times D. 1.5 times C. 2.14 times 27. What will be the Current Ratio of a company whose net working capital is zero? B. 0 A. Can’t say C. 1 : 1 D. 1 : 5 28. Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ___(i)___ whereas in case of admission of a partner it is shared by ___(ii)___. A. (i) Remaining Partners, (ii) All Partners. B. (i) All Partners, (ii) Old Partners. C. (i) New Partner, (ii) All Partner. D. (i) Sacrificing Partner, (ii) Incoming Partner 29. What will be the correct sequence of events? (i) Forfeiture of shares. (ii) Default on Calls. (iii) Re-issue of shares. (iv) Amount transferred to capital reserve. B. (ii), (iv), (i), (iii) A. (i), (iv), (ii), (iii) D. (iii), (iv), (i) (ii) C. (ii), (i), (iii), (iv) 30. Which of the following is true regarding Salary to a partner, when the firm maintains fluctuating capital accounts? A. Debit Partner’s Loan A/c and Credit P & L Appropriation A/c. B. Debit P & L A/c and Credit Partner’s Capital A/c. C. Debit P & L Appropriation A/c and Credit Partner’s Current A/c. D. Debit P & L Appropriation A/c and Credit Partner’s Capital A/c 31. At the time of reconstitution of a partnership firm, recording of an unrecorded liability will lead to: A. Gain to the existing partners B. Loss to the existing partners C. Neither gain nor loss to the existing partners D. None of the above

34. As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for: A. Writing off capital losses B. Issue of fully paid bonus shares C. Writing off discount on issue of securities D. Writing off preliminary expenses 35. Net Assets minus Capital Reserve is: A. Purchase consideration B. Goodwill C. Total assets D. Liquid assets 36. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A) : Revaluation A/c is prepared at the time of Admission of a partner. Reason (R) : It is required to adjust the values of assets and liabilities at the time of admission of a partner, so that the true financial position of the firm is reflected. In the context of the above two statements, which of the following is correct? Codes: A. Both (A) and (R) are correct and (R) is the correct reason of (A). B. Both (A) and (R) are correct but (R) is not the correct reason of (A). C. Only (R) is correct. D. Both (A) and (R) are wrong 37. Which of the following statement is/are true? (i) Authorized Capital < Issued Capital (ii) Authorized Capital  Issued Capital (iii) Subscribed Capital  Issued Capital (iv) Subscribed Capital > Issued Capital B. Both (i) and (iv) A. (i) only C. Both (ii) and (iii) D. (ii) only Directions (Qs. No. 38 and 39): These questions are based on the hypothetical situation given below.

32. Revaluation of assets at the time of reconstitution is necessary because their present value may be different from their: A. Market Value B. Net Value C. Cost of Asset D. Book Value

Bright Star Limited is engaged in manufacture of highend medical equipment. Considering the prospects of high growth in this segment the company has decided to expand and for this purpose additional investm ent of ` 50,00,00,000 is required. Directors have decided that 20% of this requirement would be financed by raising long term debts and balance by issue of Equity shares.

33. In which of the following situation Companies Act 2013 allows for issue of shares at discount? A. Issued to vendors B. Issued to public C. Issued as sweat equity D. None of the above

As per memorandum of association of the company the face value of Equity shares is ` 100 each. Also, considering the market standing of the company these shares would be issued at a premium of 25%. Directors decided to issue sufficient shares to collect the desired amount (including premium).

Sample Paper

5

The prospectus was issued to public, and the issue was over subscribed by 2,00,000 shares which were issued letters of regret. Answer the below mentioned questions considering that the entire amount was payable on application.

the amount of interest that Partner will receive for the current accounting period: B. ` 1,400 A. ` 4,200 C. ` 1,575 D. ` 800

38. What is the total amount collected on application? A. ` 42,50,00,000 B. ` 40,00,00,000 C. ` 32,00,00,000 D. None of the above

43. Which of the following are included in traditional classification of ratios? (i) Liquidity Ratios (ii) Statement of Profit and Loss Ratios (iii) Balance Sheet Ratios (iv) Profitability Ratios (v) Composite Ratios (vi) Solvency Ratios A. (ii), (iii) and (v) B. (i), (iv) and (vi) C. (i), (ii) and (vi) D. All (i), (ii), (iii), (iv), (v), (vi)

39. How many Equity shares were offered for issue by Bright Star Ltd? B. 50,00,000 shares A. 40,00,000 shares D. 32,00,000 shares C. 35,00,000 shares Directions (Qs. No. 40 – 42): These questions are based on the hypothetical situation given below. On 1st September 2020, twenty students of Modern College started their Partnership Firm in the name of “Be Safe” for selling sanitisers on digital mode. Since they were good friends of each other, they were not having any explicit agreement in place. All of them have agreed to invest ` 15,000/- each as capital. The books were closed on 31st March 2021, on which date the following information was provided by the firm: Particulars Sale of Sanitisers Cost of goods sold

Amount (`) 1,20,000 50,000

Total Remuneration to partners

2,000 per month

Rent to a partner

1,000 per month

Manager’s Commission

5,000

Closing Stock

9,000

as on March 31, 2021 6% Fixed Deposit (made on 31.3.2021)

20,000

40. Calculate the amount of profits to be transferred to Profit and Loss Appropriation Account: B. Profit ` 44,000 A. Profit ` 58,000 C. Profit ` 59,200 D. Profit ` 58,700 41. On 31st March 2021, Remuneration to Partners will be provided to the partners of “Be Safe” but only out of: A. Profits for the accounting year B. Reserves C. Accumulated Profits D. Goodwill 42. On 01st December 2020 one of the partners of the firm introduced additional capital of ` 30,000 and also advanced a loan of ` 40,000 to the firm. Calculate

44. The following groups of ratios primarily measure risk: A. solvency, activity, and profitability B. liquidity, efficiency, and solvency C. liquidity, activity, and profitability D. liquidity, solvency, and profitability 45. Which one of the following is correct? (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Ideally accepted current ratio is 1 : 1. (iv) Debt equity ratio is the relationship between outsider’s funds and shareholders’ funds? In the context of the above two statements, which of the following options is correct? A. All (i), (ii), (iii) and (iv) are correct B. Only (i), (ii) and (iv) are correct C. Only (ii), (iii) and (iv) are correct D. Only (ii) and (iv) are correct 46. Which of the following are the tools of Vertical Analysis? (i) Ratio Analysis. (ii) Comparative Statements. (iii) Common Size Statements. B. Both (i) and (iii) A. Only (iii) C. Both (i) and (ii) D. Only (i) 47. Match the items given in Column-I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act 2013. Column-I Column-II (a) Loose Tools (i) Intangible fixed assets (b) Patents (ii) Other current assets (c) Prepaid Insurance (iii) Long term Borrowings (d) Debentures (iv) Inventories (e) Machinery (v) Tangible Fixed assets

6

Sample Paper

Choose the correct option: (c) (b) (a) (iv) (ii) A. (i) (ii) (i) B. (iv) (ii) (i) C. (iv) (i) (iv) D. (v)

Reason (R) (d) (iii) (iii) (v) (ii)

(e) (v) (v) (iii) (iii)

: A high operating ratio leaves a high margin to meet non-operating expenses.

In the context of the above two statements, which of the following is correct? Code: A. (A) and (R) both are correct and (R) correctly explains (A) B. Both (A) and (R) are correct but (R) does not explain (A) C. Both (A) and (R) are incorrect. D. (A) is correct but (R) is incorrect

48. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A) : Increasing the value of closing inventory increases profit. Reason (R) : Increasing the value of closing inventory reduces cost of goods sold. In the context of the above two statements, which of the following is correct? Codes: A. Both (A) and (R) are correct and (R) is the correct reason of (A). B. Both (A) and (R) are correct but (R) is not the correct reason of (A). C. Only (R) is correct. D. Both (A) and (R) are wrong.

50. Current ratio of Adaar Ltd. is 2.5 : 1. Accountant wants to maintain it at 2 : 1. Following options are available. (i) He can repay Bills Payable (ii) He can purchase goods on credit (iii) He can take short term loan Choose the correct option: A. Only (i) is correct B. Only (ii) is correct C. Only (i) and (iii) are correct D. Only (ii) and (iii) are correct

49. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A) : A high operating ratio indicates a favourable position.

ANSWERS 1 C

2 B

3 D

4 B

5 C

6 D

7 B

8 D

9 B

10 A

11 D

12 B

13 A

14 B

15 B

16 A

17 D

18 A

19 A

20 C

21 D

22 B

23 C

24 D

25 A

26 B

27 C

28 B

29 C

30 D

31 B

32 A

33 C

34 A

35 A

36 A

37 C

38 A

39 D

40 A

41 A

42 D

43 A

44 D

45 B

46 B

47 B

48 A

49 C

50 D

7

Book Code

7

Sample Paper

Price

Subjects

R-2448

CUCET—M.Com Entrance Exam

320

R-2569

CUCET—M.A. English Entrance Exam

390

R-2681

CUCET—M.A. English Previous Years' Papers (Solved)

140

R-2272

CUCET—M.A.

395

R-2260

CUCET—M.A. Mathematics Entrance Exam

430

R-2245

CUCET—M.A. History Entrance Exam

440

R-2308

CUCET—B.Ed. Entrance Exam

320

R-2309

CUCET—B.Ed. Previous Years' Papers (Sol.)

110

R-2524

CUCET—M.A. Political Science Entrance Exam

360

R-2279

CUET-PG—MA/M.Sc Geography Entrance Exam

445

R-2448

R-2569

R-2245

R-2308

R-2681

R-2309

R-2272

R-2260

R-2524

R-2279

E-mail your order to: [email protected]

4457, Nai Sarak, Delhi-6 For Online Shopping: www.rameshpublishinghouse.com

2206

8

8

Sample Paper

Book Code

Subjects

R-2641

General Test (Section-III)

R-2642

Price 330

Books Series-1: English Language (Section-IA)

270

R-2715

Books Series-2: Accountancy/Book Keeping, Economics/Business Economics, Business Studies (Section-II)

380

Books Series-3: History, Political Science, Geography/Geology (Section-II)

380

Price

Subjects Books Series-8: Physics, Chemistry, Mathematics (Section-II)

370

Books Series-9: Biology, Chemistry, Physics (Section-II)

360

R-2714

Books Series-12: Business Studies (Section-II)

130

R-2716

Books Series-13: History (Section-II)

130

R-2717

Books Series-14: Political Science (Section-II)

130

R-2718

Books Series-15: Geography/Geology (Section-II)

140

R-2719

Books Series-16: Home Science (Section-II)

130

R-2731

330

(Section-III)

R-2703

R-2751

Book Code

R-2732

R-2711

Books Series-4: Home Science/Sociology/ History (Section-II)

380

R-2720

Books Series-17: Sociology (Section-II)

130

R-2300

Books Series-5: Legal Studies (Section-II)

195

R-2721

Books Series-18: Physics (Section-II)

160

195

R-2722

Books Series-19: Chemistry (Section-II)

130

R-2723

Books Series-20: Mathematics (Section-II)

110

R-2724

Books Series-21: Biology (Section-II)

110

R-2704

Books Series-6:

R-2706

Books Series-7: Fine Arts/Visual Arts/ Commercial Arts (Section-II)

R-2641

R-2300

(Section-IA)

R-2703

R-2704

240

R-2715

R-2751

R-2711

R-2706

R-2731

R-2732

E-mail your order to: [email protected]

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2206

1

(2712) Accountancy—1

2

Accountancy/Book Keeping

Accountancy/Book Keeping

1

3

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATION

MEANING AND CHARACTERISTICS OF NOT-FOR-PROFIT ORGANISATION



The surplus generated in the form of excess of income over expenditure is not distributed amongst the members.

Not-for-Profit Organisations refer to the organisations that are for used for the welfare of the society and are set up as charitable institutions which function without any profit motive. Their main aim is to provide service to a specific group or the public at large. Normally, they do not manufacture, purchase or sell goods and may not have credit transactions.

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The accounting information provided by such organisations is meant for the present and potential contributors and to meet the statutory requirement.

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The Not-for-Profit Organisations earn their reputation on the basis of their contributions to the welfare of the society rather than on the customers’ or owners’ satisfaction.

Hence they need not maintain many books of account (as the trading concerns do) and Trading and Profit and Loss Account. The funds raised by such organisations are credited to capital fund or general fund. The major sources of their income usually are subscriptions from their members donations, grants-in-aid, income from investments, etc.

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The funds raised by such organisations through various sources are credited to capital fund or general fund.

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Their affairs are usually managed by a managing/ executive committee elected by its members.

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These are organised as charitable trusts/societies and subscribers to such organisation are called members.

The main objective of keeping records in such organisations is to meet the statutory requirement and help them in exercising control over utilisation of their funds. They also have to prepare the financial statements at the end of each accounting period (usually a financial year) and ascertain their income and expenditure and the financial position, and submit them to the statutory authority called Registrar of Societies.

ACCOUNTING RECORDS OF NOT-FOR-PROFIT ORGANISATIONS The main sources of their income are subscriptions from members, donations, financial assistance from government and income from investments. Most of their transactions are in cash or through the bank. These institutions are required by law to keep proper accounting records and keep proper control over the utilization of their funds. This is why they usually keep a cash book in which all receipts and payments are duly recorded. They also maintain a ledger containing the accounts of all incomes, expenses, assets and liabilities which facilitates the preparation of financial statements at the end of the accounting period. In addition, they are required to maintain a stock register to keep complete record of all fixed assets and the consumables.

The main characteristics of such organisations are: 

The main sources of income of such organisations are: (i) subscriptions from members, (ii) donations (general). (iii) legacies(general). (iv) grant-in-aid, (v) income from investments, etc.

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Such organisations are formed for providing service to a specific group or public at large such as education, health care, recreation, sports and so on without any consideration of caste, creed and colour.

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About the Book The present book has been specially published for the aspirants of ‘CUET (Section-II: Domain Specific Subject)–Accountancy/Book Keeping’ for admission in UG Programmes in Various Universities. The book is highly recommended to study and prepare yourself to face the exam with confidence. Salient Features of the Book: l The book comprises Specialised Study and Practice Material with Solved Question Paper to make you familiar with the exam pattern and the type of questions asked, with their answers. l Specialised Study Materials are arranged in a proper way for better understanding of students. l Practice-questions have been modelled on the basis of questions asked in various papers and solved by respective subject-experts with due diligence. l Based on the Current Pattern of Exam, the book will prove very useful for study, practice and during precious moments before the exam for reference and revision. While this book is aimed to Set you Court your Success, your own intelligent study and practice in harmony with this, will ensure you secure a seat in the prestigious course leading you to a Successful Career.

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